EURUSD Movement
For the 24 hours to 23:00 GMT, EUR rose 0.06% against the USD and closed at 1.3527. The US Dollar came under pressure after a report indicated that the nation’s initial jobless claims rose to a level of 374,000 during the week ended October 4, surpassing analysts’ expectation for a rise to 310,000 and compared to a reading of 308,000 registered in the previous week. Additionally, investors also refrained from taking riskier bets in the greenback amid an ongoing budget talks between the US President, Barack Obama and the Republicans.
Meanwhile, the European Central Bank (ECB) President, Mario Draghi, in his speech, hinted that the policy makers were willing to incorporate an easing bias that could explicitly provide for cuts in borrowing costs, should the volatility in money market conditions return to the levels observed in early summer. Separately, a monthly report from the ECB, also indicated that the nation’s benchmark interest rates would remain at the current low or lower levels for an extended period of time in order to support the gradual recovery in the Euro-zone economic activity.
In the Asian session, at GMT0300, the pair is trading at 1.3539, with the EUR trading 0.09% higher from yesterday’s close.
The pair is expected to find support at 1.3502, and a fall through could take it to the next support level of 1.3464. The pair is expected to find its first resistance at 1.3562, and a rise through could take it to the next resistance level of 1.3584.
Later during the day, Germany is expected to release a report on its consumer price index, which the market expects to remain unchanged at previous month’s level of 0.0% (MoM) in September.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
